All Forum Posts by: Gabriel Miritello

Investment Info:

Single-family residence other investment.

Purchase price: $65,000
Cash invested: $70,000

The house was all about building equity and the long term game. This home also taught me 2 important lessons - it never hurts to ask and just because a contractor was good before doesn't mean he'll be good next time.

Never hurts to ask: The original MLS list price was $125K it dropped to $110K after 30 days and finally dropped to $95K after 3 months. I had my realtor reach out with a $60K cash offer. They countered at $70K and we settled at $65K. After putting in $70K in reno, I was all in at $135K. I pulled 130K out and it was appraised at $185K. Its now rented and after all expenses and money set aside it brings in $100 a month. Potential to refi in a few years for a lower rate(currently at 8.675%).

Previous contractor who was good went bad - I will say that i am sure i have some fault, but he never let me know what it was to correct. We have done 2 previous full renos with him and decided to use him here. Towards the last 50% his progressed slowed dramatically. Took a 3 month reno to 5.5 months and left some items incomplete. He basically took on to many projects without enough crew. And i feel abused our past relationship to violate our timeline so that he wouldn't loose new customers. The worst part was that he would be posting on twitter working on other projects when he should have been on mine. I thought of pulling but didn't want to switch so far in and having not paid him all cash acted as a carrot to finish it up, though it took longer then it should have. Onto the next contractor.

What made you interested in investing in this type of deal?

It was sitting on the market for a very long time.

How did you find this deal and how did you negotiate it?

MLS - swing for the fences and offer a low ball offer

How did you finance this deal?

Cash - from previous BRRRR

How did you add value to the deal?

Complete reno

What was the outcome?

$100 cash flow and $50K equity

Lessons learned? Challenges?

Read the post

@Arn Cenedella, wow thanks. I am a numbers guy - love excel and to talk math. While my goal is $10K cash flow per month at "retirement"/4.5 years; i have never broken it down this way. Knowing the amount of equity puts a mark on the table. $2M thats the goal. LOL - simple as that. I havent been striving for cash flow now, but never really realized the best way to equate exactly what i needed for the future. Thank you for writing that out, makes a huge difference. 

@Denver McClure - Thank you very much for the reply and insight.  Also thanks for your service Devil Dog. I have considered the hypothetical future, i usually run it at 5%, but TBH, didnt know if that was a common practice or just wishful thinking on my behalf. Good to see i am not to far off.  With those numbers, rent increase at 2% per year - yes those numbers look far more favorable. Thank you also for the discussion of the 1031 trade up. Again i appreciate the feedback. 

I have 3 SFH rentals and have completed 2 flips that I have purchased or completed full renos on, while being a long distance investor. I have a good SFH system in place in the area that I have completed all my home projects.

 My real estate goal is when I can retire from the military in 4.5 years, I want to cash flow plus pension to do what I want to do, without fear of finding "work". I like my SFHs but am interested in the 2-10 MF doors space.

My question: I think I am ready to scale up to multifamily but feel the MLS listings do not cash flow. How have you/did you scaled up into long distance multifamily real estate? Finding deals? Manage?

Thanks,

Gabe

I think you guys are all correct. You can't use the new system to estimate if you're a newbie...its inaccurate, clunky, and wont allow you to easily do a whole house how you want to categorize it.

The old system was great. While it didn't auto populate numbers for you(both a good and bad thing in my eyes) it did have a ton of items that a newbie and oldie forget sometime when doing a reno. It allowed you to add unlimited items and helped me really estimate. Yes I had to get quotes, but I didn't want an estimator to give me false numbers....I want it to help show the picture and easily add up all the repairs based on my estimates.

BP really should dump the sponsors crap with this one and go back to the old system. I get they want to make money but at what expenses...I pay for pro for the products and this product is bad.

Nate, I'm up for talking, send me a PM. Thanks

Maybe i just don't understand the new system but why did you change to a system that is completely non-customizable, has limits to it, and is very inaccurate. I understand that some new investors may like numbers thrown at them...but when they are so inaccurate what good does that do? I have religiously used the older system and tightened up my estimates thanks to the capabilities that it offered along with knowledge of my market.  In the new system a bathroom that would run 4-5K, is estimated at $15K...2000sqft home - flooring =$3000...these numbers a laughable. And then it caps me out on only a certain number of projects.

Please fire Kukan and bring back a simple system that allowed the paying customers to adjust to their market.

I may be the loan wolf out on a limb and while I love BP - this system is giving it a bad name and a commercialized none helpful feel.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $124,000
Cash invested: $93,000
Sale price: $268,000

Complete renovation. 3/1 to 3/2 1008 SQFT - Floors to AC, paint to roof repair, kitchen gut to adding a full bath.
Key lessons learned:

What made you interested in investing in this type of deal?

The price was good but the area was great. I caught it in the middle of the price increase madness of 2022....and sold just before the bottom fell out. If i sold 2 months earlier - I would have made an extra $20K easily.

How did you find this deal and how did you negotiate it?

Found on BP by using the key word notification. Seller had a 3 pack of homes and his financing fell out 2 days prior to close over Christmas. He wanted me to fund the house and I wasn't interested. He instead offered me this one and took the other 2 in order to save the 3 pack deal.

How did you finance this deal?

Cash out of pocket. I had sold a few homes in the previous year.

How did you add value to the deal?

Complete reno - see pictures

What was the outcome?

Over budget - over time - lots of lessons learned....and still made good money after all fees.

Lessons learned? Challenges?

-2 contractors= NO contractors. Choose one contractor and go with it
-Don't paint smoke rooms - Rip out smokey sheetrock instead of trying to paint them ... repeatedly
-Buy a home warranty - we had an AC on the way out....and i didnt buy one- it died 2 days before keys were handed over; it cost me $8K

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes - reach out and ill pass along those in the area I would recommend.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $124,000
Cash invested: $93,000
Sale price: $268,000

Complete renovation. 3/1 to 3/2 1008 SQFT - Floors to AC, paint to roof repair, kitchen gut to adding a full bath.
Key lessons learned:
-2 contractors= NO contractors. I tried to save money by subbing out different jobs to a separate contractor. This cost me in time and frustration between contractors.
-Don't paint smoke rooms - We have a room that was heavily smoked in. Instead of ripping out the sheetrock and redoing the room I decided to go the less expensive route and painting the room. 1 coat of Killz and 3 coats of paint later we finally fixed the issues. lot of time wasted and money spent - just rip it out
-Buy a home warranty - the AC was weak - we tried to push through with leaving it as is with a tune up. However 2 days before keys were handed over - the AC died....i should have purchased a HW day 1 knowing it was on its last leg....and transferred the HW to the new owner
-KEY WORD alerts on BP are awesome - found this deal because i had the Key Words set and it pinged me of a seller looking for help on this home

What made you interested in investing in this type of deal?

The price was good but the area was great. I caught it in the middle of the price increase madness of 2022....and sold just before the bottom fell out. If i sold 2 months earlier - I would have made an extra $20K easily.

How did you find this deal and how did you negotiate it?

Found on BP by using the key word notification. Seller had a 3 pack of homes and his financing fell out 2 days prior to close over Christmas. He wanted me to fund the house and I wasn't interested. He instead offered me this one and took the other 2 in order to save the 3 pack deal.

How did you finance this deal?

Cash out of pocket. I had sold a few homes in the previous year.

How did you add value to the deal?

Complete reno - see pictures

What was the outcome?

Over budget - over time - lots of lessons learned....and still made good money after all fees.

Lessons learned? Challenges?

explained in the description

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes - reach out and ill pass along those in the area I would recommend.

Welcome. I invest in Savannah too and am also military. If you haven’t run the numbers through the BP analyzers that is a good starting point. Depending where you are at Savannah, RH, or Hinesville rent can vary greatly.  The issue I’m seeing is people selling at jan 2022 prices but the numbers may not support that. Shoot me a message if you wanna talk some ideas or if you’re looking for funding, may be able to help.